LAB #1: Clean Development Mechanism

The objective of this LAB Activity is to develop a Project Idea Note (PIN) related to a potential Clean Development Mechanism or project proposal. The exercise will provide insight into different developing countries’ context and enhance the students understanding about the different directions that a CDM project may take.

Description of the exercise ─ CDM is considered a strategic tool for reducing emissions and fostering sustainable development. The PIN will consist of approximately 5 pages providing indicative information on:

the type and size of the project.
its location.
the anticipated total amount of greenhouse gas (GHG) emission reductions compared to the “business-as-usual” scenario (which will be elaborated in the baseline later on at Project Design Document [PDD] level).
the suggested crediting life time.
the suggested Certified Emission Reductions (CER) price in US$/ton CO2‑equivalent reduced from the clean development mechanism (CDM) project
the financial structuring (indicating which parties are expected to provide the project’s financing).
a description of how the project will improve the welfare of the community or communities involved in it.

Guidelines – students shall work individually to prepare a PIN. However, it can discuss the process with other students. The student will choose one developing country, which is eligible for hosting a CDM project. The student is expected to engage in information search and analytical work in line with the in accordance with decision UNFCCC 17/CP.7. This decision defines small projects as:

renewable energy project activities with a maximum output capacity equivalent of up to 15 megawatts (or an appropriate equivalent);
energy efficiency improvement project activities which reduce energy consumption, on the supply and/or demand side, by up to the equivalent of 15 gigawatt hours per year; or,
Other project activities that both reduce anthropogenic emissions by sources and that directly emit less than 15 kilotons of carbon dioxide equivalent annually. Decision 17/CP.7 also creates a non-exclusive list of 14 small-scale project categories and specifies simplified baseline and monitoring methodologies for each category.

Proposed projects that do not conform to one of these categories, will not be graded. Use a variety of sources to get a full understanding of the different dimensions of a CDM project. Important information sources include UNFCCC, other international agencies, regulatory agencies, ministries, interest organizations, NGOs etc.

Deliverables for grading ─ all students shall prepare a 5 pages document containing the main information about the PIN. A PIN template containing a real document proposal is presented in the end of these instructions. This exercise entails to 2.0 credits.

Important Note ─ the student needs to understand that its PIN must lead to improvements in the material welfare of the community or communities involved within it. Examples of the types of goods and services which may be provided include electricity for schools, health clinics, workshops, potable water, teaching or medical services. In most cases, the project sponsor will provide the benefits either directly or through contracting a third-party provider. Use the sustainable development criteria adopted by the host country of your project.

To get started, check the following websites: